Page 240 - GSTL_30th April 2020_Vol 35_Part 5

710 GST LAW TIMES [ Vol. 35
Works contract (Contd.)
period - Contractor to bear charges for chemicals, consumable, labour
and other services in the course of execution of ‘operation and
maintenance’ - ‘Operation and maintenance’ are ‘composite supplies’ and
taxable to GST - Time of supply for composite supply of ‘operation and
maintenance’ under one of contract starting from March, 2018 only - GST
leviable on entire activity of ‘operation and maintenance’ in respect of
such contract - Such supply to TWAD, a Government Authority in
relation to functions entrusted to Panchayat or Municipality - Exemption
under Serial No. 34 of Notification No. 72/2017-C.T. (Rate) and Serial No.
3A of G.O. (Ms) No. 73, dated 29-6-2017 No. II (21)/CTR/532(d-I5)/2017
as amended applicable in respect of ‘operation and maintenance’ part of
contract entered with TWAD in respect of agreement dated 3-3-2014 to
that extent for which bills/invoices raised after 25-7-2018 and provided
value of supply of goods in each such bill did not constitute more than 25
per cent of value of supplies undertaken by them - Exemption under
Serial No. 3A of Notification No. 12/2017-C.T. (Rate) as amended and
Serial No. 3A of G.O. (Ms) No. 73, dated 29-6-2017 No. II(2)/CTR/532(d-
I5)/2017 as amended applicable in respect of ‘operation and
maintenance’ part of contract entered into with TWAD in respect of
agreement dated 5-7-2017 provided value of supply of goods involved in
each such bill did not constitute more than 25 per cent of the value of
supplies undertaken by them — In Re : Indian Hume Pipe Company Ltd. (A.A.R. -
GST - T.N.) ....................................... 217
— Taxability of construction service on land owned by others - See under
CONSTRUCTION SERVICE ............................ 235
— Transition from VAT to GST - Differential tax amount arising out of
change in tax regime from Value Added Tax (VAT) to Goods and
Services Tax (GST) with effect from 1-7-2017 - Petitioners required to pay
tax not envisaged while entering into the agreement - Revised guidelines
relating to works contract issued by Government of Odisha, Finance
Department vide Office Memorandum No. FIN-CTI-TAX-
0045/2017/38535/F, dated 10-12-2018 according to which, (i) In case the
revised GST-inclusive work value for the Balance Work is more than the
original agreement work value for the Balance Work works contractor is
to be reimbursed for the excess amount; (ii) In case the revised GST-
inclusive work value for the Balance Work is less than the original
agreement work value for the Balance Work, the payment to the works
contractor is to be reduced accordingly - Petitioner directed to make a
comprehensive representation before the appropriate authority within
four weeks from today ventilating his grievance and the authority will
consider and dispose of the same, in the light of the aforesaid revised
guidelines dated 10-12-2018 issued by the Finance Department,
Government of Odisha — Ajit Kumar Sahoo v. Executive Engineer Pattamundai Canal
Division Kendrapara (Ori.) ................................ 533
Works Contract service - Composite contracts, involving provision of
service as well as transfer of property in goods are covered under works
contract service prior or after 1-6-2007 and not under Commercial or
Industrial Construction Service (CICS) in view of the decisions given in
GST LAW TIMES  30th April 2020  240